MAKE/MODEL


YEAR


ARTICLES

-
www.flickr.com
This is a Flickr badge showing public photos and videos from cartype.com. Make your own badge here.
CT Broadcast
Cartype on Kindle
Cartype on Twitter

RSS RSS FEEDS

Subscribe to our web feeds:

 
 

Fiat Group, Chrysler and Cerberus Announce Plans for a Global Strategic Alliance

Filed under:  Brand Related
 
Comment(s): 0
 
 

January 20, 2009.
Fiat S.p.A., Chrysler LLC (Chrysler) and Cerberus Capital Management L.P., the private investment majority owner of Chrysler LLC, announced today they have signed a non-binding term sheet to establish a global strategic alliance.


fiat chrysler

The alliance, to be a key element of Chrysler’s viability plan, would provide Chrysler with access to competitive, fuel-efficient vehicle platforms, powertrain, and components to be produced at Chrysler manufacturing sites. Fiat would also provide distribution capabilities in key growth markets, as well as substantial cost savings opportunities. In addition, Fiat would provide management services supporting Chrysler’s submission of a viability plan to the U.S. Treasury as required. Fiat has been very successful in executing its own restructuring over the past several years. The alliance would also allow Fiat Group and Chrysler to take advantage of each other's distribution networks and to optimize fully their respective manufacturing footprint and global supplier base.

The proposed alliance would be consistent with the terms and conditions of the U.S. Treasury financing to Chrysler. Per the U.S. Treasury loan agreement, each constituent will be asked to contribute to Chrysler’s restructuring effort including: lenders, employees, the UAW, dealers, suppliers and Chrysler Financial. Such steps would greatly contribute to Chrysler’s long term viability plan. Completion of the alliance is subject to due diligence and regulatory approvals, including the U.S. Treasury.

As a consideration for Fiat Group’s contribution to the alliance of strategic assets, to include: product and platform sharing, including city and compact segment vehicles, to expand Chrysler’s current product portfolio; technology sharing, including fuel efficient and environmentally friendly powertrain technologies; and access to additional markets, including distribution for Chrysler vehicles in markets outside of North America, Fiat would receive an initial 35 percent equity interest in Chrysler. The alliance does not contemplate that Fiat would make a cash investment in Chrysler or commit to funding Chrysler in the future.

“This initiative represents a key milestone in the rapidly changing landscape of the automotive sector and confirms Fiat and Chrysler commitment and determination to continue to play a significant role in this global process. The agreement will offer both companies opportunities to gain access to most relevant automotive markets with innovative and environmentally friendly product offering, a field in which Fiat is a recognized world leader while benefitting from additional cost synergies. The deal follows a number of targeted alliances and partnerships signed by the Fiat Group with leading carmakers and automotive suppliers over the last five years aimed at supporting the growth and volume aspirations of the partners involved,” the CEO of Fiat Group, Sergio Marchionne said.

"A Chrysler/Fiat partnership is a great fit as it creates the potential for a powerful, new global competitor, offering Chrysler a number of strategic benefits, including access to products that compliment our current portfolio; a distribution network outside North America; and cost savings in design, engineering, manufacturing, purchasing and sales and marketing," said Bob Nardelli, Chairman and CEO of Chrysler LLC. "This transaction will enable Chrysler to offer a broader competitive line-up of vehicles for our dealers and customers that meet emissions and fuel efficiency standards, while adhering to conditions of the Government Loan. The partnership would also provide a return on investment for the American taxpayer by securing the long-term viability of Chrysler brands in the marketplace, sustaining future product and technology development for our country and building renewed consumer confidence, while preserving American jobs."

"This is great news for the UAW Chrysler team and we look forward to supporting and working with them to ensure Chrysler's long term viability,” said Ron Gettelfinger, President United Auto Workers (UAW).

“We're on board with this important strategic initiative as it will help preserve the long-term viability of our great company, its brands and of course UAW-Chrysler jobs,” said General Holiefield, Vice President, United Auto Workers (UAW).

(source: Chrysler)


RELATED ARTICLES
Chrysler related hood ornaments   
Fiat 500C : 2009   
Fiat 600 Multipla : 1955   
Fiat Campagnola : 1974   
Chrysler 2009 February Sales   A decrease of 26 percent.
Fiat 2300-S Coupe : 1961   
Fiat 500 Barbie : 2009   A Fiat 500 Show Car Birthday Gift For Barbie®
Chrysler LLC Launches New Global Corporate Advertising Campaign   Campaign debuts on network primetime television May 11, 2009.
Chrysler Group LLC names C. Robert Kidder as new Chairman   
LINKS
Fiat   Official site.
Chrysler   Official site.
 
 
COMMENTS
There have been no comments
POST A COMMENT
Name
URL
Email
Comment
HTML tags allowed: <a> <em> <strong> <blockquote>
Spambots begone
ABOUT EDITORS CONTACT

CARTYPE STORE


Fiat 500L
(Diecast Models)
-
Advertise on Cartype
-
Twitter Facebook Vimeo YouTube Flavors.me Flickr Kindle
-
-
Car Shipping Companies
Auto Transport Quotes
DIVIDER_large
-

CARTYPE STORE

Go Faster. The Graphic Design of Racing Cars. Cars That Matter Italian Racing Red Car Design Yearbook 1
-
-

NOTICE

Much of the material on this website is copyrighted. Original articles appearing herein are subject to copyright. Please don't copy stuff from the site without asking; it may belong to someone! Any trademarks appearing on this site are the sole property of the registered owners. No endorsement by trademark owners is to be construed. The products, brand names, characters, related slogans and indicia are or may by claimed as trademarks of their respective owners. Every effort has been made whenever possible to credit the sources. The use of such material falls under the Fair Use provisions of intellectual property laws.